Discussing finances with aging parents is challenging but essential. By opening up the money conversation, you improve their chances for financial security and prevent all-too-common misunderstandings.
Consider these four techniques for broaching the conversation:
1. Segue from a broader topic
This approach starts by finding common ground, such as discussing recent market conditions or rising healthcare costs. This can naturally lead to conversations about the health of their investments and any concerns they might have about their retirement savings.
2. Inquire about their financial advisor
Emphasize that you work closely with your advisor and that you’re curious how they like theirs. This gives you a chance to gauge the depth of relationship, frequency of contact, and trust in recommendations.
3. Blame it on your financial advisor
If bringing up the topic feels too personal, you can use your financial advisor as a reason for the conversation. This can take away some of the discomfort. After all, most financial advisors agree that family financial discussions are a good thing.
4. Inquire about the handling of their estate.
You may end up playing a very direct role in executing their estate. If that’s the case, you have a vested interest in things being well thought-out and coordinated.
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